How should I handle my landlord's lease buyout/move-in eviction?
October 18, 2016 12:01 PM   Subscribe

My landlord intends to move back into my flat. She has discussed (with no terms) a lease buyout. She has indicated that if we can't reach an agreement on a buyout, she'll proceed with a move-in eviction. Any advice?

I rent a 3BR/1BA flat in a 3-unit building in Berkeley, CA with my wife and two kids. My landlord informed us last night that she intends to move back into the flat. She has initiated the discussion about a lease buyout, also informing us that if we can't come to terms on a buyout, she will proceed with an owner move-in eviction.

Aside from consulting a lawyer and learning about local law concerning lease buyouts and owner move-in evictions, I would appreciate any suggestions from anyone with expertise (I will not take your comments as legal advice!) or personal experience with the situation.

For reference, we pay $2,621/mo. rent and have lived here for 6 years. I'd estimate current market rent for a similar space at $3,800-4,000/mo. or so. (Perhaps wishful thinking...)
posted by mrgrimm to Home & Garden (32 answers total) 3 users marked this as a favorite
 
So, I mean, what do you want the ultimate outcome of this to be? Say you fight her on the lease buyout or eviction. She wants you out of there, she's going to get you out of there one way or another. It's in your best interest to get out with as much benefit as possible.

Start looking for a new place to live, now. Don't estimate, start looking and calling around. You don't want to wait until the last minute for this kind of thing.
posted by INFJ at 12:08 PM on October 18, 2016 [3 favorites]


I would do serious research on the requirements for owner move-in in Berkeley. In Oakland, the owner has to stay for three years. If they move back out before then, they are required to offer the place back to you at the same rent (plus the allowed annual increases). If they don't, you may have a massive wrongful eviction suit on your hands.

There is very particular documentation required, tied to both state and local laws. I think she needs to give you 60 days notice of the owner move-in, but you should check on that.

Basically, I recommend starting to work on a plan to move if needed, but make it very clear you understand the law and will insist on your rights not being violated. Read up on California tenant law, read the Berkeley ordinances on rent control, etc. Talk to a lawyer. Don't sign anything waiving your right to sue from wrongful eviction unless you are getting a boatload of money and you've looked it over with a lawyer.

I am a little on the paranoid side on this issue, but there is a lot of incentive for fraudulent behavior like fake owner move-ins in this market.

(My landlord gave us an owner move-in notice but rescinded it after we refused to sign a form waiving all claims regarding our tenancy.)
posted by ktkt at 12:18 PM on October 18, 2016 [9 favorites]


Response by poster: > what do you want the ultimate outcome of this to be?

1. To stay in this apartment at current rate as long as possible (intangible value + financial savings of $1,200/mo.)

2. Receive as much money as possible in the lease buyout.

I do care about right action, but the feelings (and finances) of my landlord are not that important to me. I think she's treated us poorly through the years.

I am a little on the paranoid side on this issue, but there is a lot of incentive for fraudulent behavior like fake owner move-ins in this market.

Definitely, and she would be one to do it. She offered to sell us the house a few years ago, if we "bought" it for 200K less than her price, and put $200K in cash in a Swiss bank account, i.e. tax fraud.

I found out we were paying for part of the gas and electricity in another unit and she refused to create a gas-sharing agreement (as required by law), and when pushed, threatened to raise my rent if I didn't drop it.

She has complained that she is "subsidizing" our rent because rent control keeps it a grand under "market value." She has complained about our water usage and ordered us to stop watering our garden (which we ignored).

Start looking for a new place to live, now. Don't estimate, start looking and calling around. You don't want to wait until the last minute for this kind of thing.

Duh. I have looked at places for rent today. That's how I came up with my estimate. How do I find an affordable rental for a family of four in Berkeley"" is a whole 'nother question.

Sorry for the 'TUDE. It's been a long week already. :\
posted by mrgrimm at 12:26 PM on October 18, 2016


I know you want to stay there. What I'm saying, with all sincerity, is that you're not going to be able to. Especially if she's harried you in the past. She wants you out. Even if she does pull a fake owner move-in - you're still going to have to move to prove it.

She's clearly willing to ignore laws. Who's to say she doesn't have a relative or someone willing to live there, pay her higher rent than you're paying, and swear up and down she lives there too.

I'd start at a buyout of $14,000. That'd cover a year's worth of extra rent in a new place for you. She'll probably balk at that.. but it gives you a starting point.
posted by INFJ at 12:53 PM on October 18, 2016 [16 favorites]


There are a lot of sources for info about tenant's right in Berkeley. You can contact the rent board and the tenant's union for details and someone at the union may be able to direct you to legal help and even an informal best practices around the buyout.

One thing you may be able to negotiate is timing - esp with kids, this might be important.

Her shady practices sound shitty, but cross that water thing off your list. Monitoring your water useage during this recent multiyear drought is only common sense. You know water rates were raised and restrictions were in place?
posted by vunder at 1:08 PM on October 18, 2016


A few years back I had a landlord tell me in November that he was planning on renovating the whole building and that we had to be out by the beginning of January. Which is, of course, the ideal time to find an apartment and move in the Pittsburgh area. (Not.)

We'd been planning on moving anyway (this place was kind of a dump) so all this really did was accelerate our timeline. We found a place pretty quickly that was not too much more expensive than our existing place and moved in after Christmas. But Pittsburgh is a considerably more affordable place to find housing than Berkeley, CA and the competition is way less fierce.

I feel like in a similar position, I would try to avoid having it come to eviction and instead try to cut a deal with your landlord. Depending on the city, landlords have to give 30-60 days notice when asking a tenant to move out. Maybe in exchange for moving out willingly without her having to resort to eviction (which can be a lengthy, costly process for landlords and one that most landlords would probably want to avoid), she can give you a couple more months leeway in the place (3-4 months vs 1-2 months?) plus a buyout of whatever you think would be appropriate recompense for the inconvenience of having to move to a market rate apartment?

This is assuming your landlord is generally a reasonable person and is not on any kind of defined time-table for moving in (if she even intends to move in and is not just pulling an OMI so she can turn around and re-rent the place for more $$). If she starts getting shitty about it and doesn't seem like she wants to work with you on extra time + buyout, I'd maybe talk to someone at LegalAid about tenant's rights and dig in my heels. Eviction SUCKS for landlords.
posted by helloimjennsco at 1:09 PM on October 18, 2016 [2 favorites]


Response by poster: I don't think she's going to fake an owner move-in. I do think there's a strong possibility she's getting us to take a buyout to then turn around and re-rent it to someone else at a higher rate. (Is that allowed? I would guess that's part of the buyout contract ...) That's why I think I'll ask for first right of return, but I need to talk to a lawyer regardless.

Would it be worth it to get a notice for her in writing saying that if we don't agree to a buyout, she's going to try a move-in eviction. (I honestly don't know if she even qualifies... she may own other property.) Is it legal for her to bluff that?

We'd been planning on moving anyway (this place was kind of a dump) so all this really did was accelerate our timeline. We found a place pretty quickly that was not too much more expensive than our existing place and moved in after Christmas.

Can I ask your compensation (if any)? Or the general range - thousands? I would guess my landlord is looking to get out for less than the $10,000 or so an eviction would cost.

Also, should I make an offer, or let/force her to do it first? (Again, questions for a lawyer ...)

$14,000 (from INFJ (i am E/INTP myself) sounds like a decent settlement (plus we hopefully get a nicer place with a decent human as landlord), but I think we should probably start higher, like $20,000, to get there.

Most importantly, I need to take my ego out of the equation, because I don't like her much. (I promise not to self-sabotage.)

I appreciate the suggestions. Thanks.
posted by mrgrimm at 1:23 PM on October 18, 2016 [1 favorite]


Looks like your best bet might be looking at her other properties. I know my landlord owns multiple buildings in SF.

I'd start high. She is pursuing the buyout option so she has the ability to sell the unit once you sign away your tenant rights. Being able to sell an empty unit is super valuable in the Bay Area. Once she pursues a landlord eviction, she loses a lot. But she's hoping you don't notice, so that you'll accept a low ball offer.

In SF, a family of four would be due 17,670 in relocation assistance, and still keep all the rights of a tenant (aka, have rights to return in the event of a sale). That would be my first offer. See which amount they balk at. If it's retaining your rights as a tenant, I think you'd have a good shot for six figures. If you make it clear that you will remove the financial incentive of an empty unit, she might decide to focus on a different unit, or drop the idea all together.
posted by politikitty at 1:28 PM on October 18, 2016 [5 favorites]


If you haven't seen the summary about owner move-in here it is. It is hard to be more protected as tenant than in a rent-controlled apartment in Berkeley.
posted by rockindata at 1:29 PM on October 18, 2016 [1 favorite]


Are you on an annual lease? How far off is the end of lease date ?
posted by calgirl at 1:36 PM on October 18, 2016


That's a pretty interesting summary there. Check for other properties owned by your landlord! (In my city, you can search property records by owner name.)
posted by raisingsand at 2:22 PM on October 18, 2016


You need to get a lawyer. This is a good article , albeit on SF buyouts, but some of it may be educational, especially the part about how to find a lawyer.
posted by vivzan at 3:20 PM on October 18, 2016 [1 favorite]


To elaborate a bit on my earlier answer...

Here's the thing -- if she wants to legitimately move herself in and stay, she probably doesn't have to pay you anything at all. (Unless you meet the low income guidelines, in which case there is some payment.) She just needs to get the paperwork filed correctly. You presumably won't let things get to the point of an eviction for cause (by staying past the date specified in a proper Notice to Vacate), because that will end up on your credit report and make it extremely hard for you to get housing in the future.

Almost certainly she has more lucrative plans in mind, or she wouldn't even be discussing a buyout. It would just be, "Here's your Notice to Vacate, with all proper documentation. It's for owner move-in. You have to be out by such and such date. Have a nice life."

Any sort of buyout settlement will probably come with paperwork in which you waive your right to reoccupy, to sue for wrongful eviction, or to pursue any sort of legal claim regarding your tenancy. (I have no idea whether the "or anything else you might think of" type clauses are enforceable, which is why you get a lawyer.) So, if you accept such an offer, you want to make sure you are fine taking it and then walking away from the whole mess forever, because unless landlord and their lawyer are complete dopes and screw up the paperwork, there won't be a second chance.
posted by ktkt at 3:27 PM on October 18, 2016 [3 favorites]


Looking at this link that rockindata provided, since you say you've lived in the apartment for 6 years, and there are 3 units total in the building... if your landlord has at least a 10% stake in 2 more rental units in Berkeley, she can't evict you.

I'd be looking hard at property records if I were you.
posted by Automocar at 3:43 PM on October 18, 2016 [1 favorite]


I don't know much about the details, but there is info on buyouts here from the Berkeley rent board here http://www.ci.berkeley.ca.us/rent/

Also, they list office hours at the top of the page. My friend had good luck stopping in and talking to people there in getting specific information. Might as well make a free stop there before a lawyer.
posted by ...tm... at 4:16 PM on October 18, 2016


I agree with others encouraging you to scour property records for ownership of other buildings. You need just two more "residential rental units" and you can tell your landlord to pound sand.

I also think a buyout of $14k is crazy low. In SF in 2014 buyouts ranged from "$20,000 to $60,000", and that article recommends a buyout rate of 2 years of the difference between the rental and market rates. So in your case, that would be 24*(4000-2621) = $33096. I understand Berkeley is not SF, but it's getting competitive everywhere in the Bay Area and you have some leverage here.
posted by crazy with stars at 5:25 PM on October 18, 2016 [1 favorite]


I'd be looking hard at property records if I were you.

This link says it's unavailable right now but has historically been useful to me with questions like this.
posted by salvia at 12:15 AM on October 19, 2016


Can I ask your compensation (if any)? Or the general range - thousands? I would guess my landlord is looking to get out for less than the $10,000 or so an eviction would cost.

Aww man, we were renting month to month and I was a broke recent college grad. I didn't even know buyouts were an OPTION at the time. We basically just got our security deposit back and a little bit of wiggle room on the move out date because of when our new lease started.
posted by helloimjennsco at 11:36 AM on October 19, 2016 [1 favorite]


Buyouts are not typically an option, which is why jurisdictions matter so much. The Bay Area and New York are pretty much the few places where the tenant rights and housing market are so strong, there is an incentive to make these informal offers to bring a unit back to market rate.
posted by politikitty at 11:53 AM on October 19, 2016


Response by poster: I figured buyouts only existed in high-demand markets (Portland, Seattle, SF, NY, etc.), but I know they definitely exist here ... mostly because my landlord brought it up. ;)

I have an appointment with a tenant lawyer tomorrow. I'll share what I learn, as it could be useful to someone else down the line.

I think really what we're looking at is trying to decide if our landlord is really going to move back with a 16-year-old into a much smaller unit than her current house for 3 years or if she's just bluffing to get us to sign a buyout and then turn around and rent it for $1K more per month.

To me, that's really the sticky wicket, and I think I can figure out her intentions by casually discussing "right of return at a reasonable rate" and that's what I really need to talk to a lawyer about.

If she does an OMI eviction, we don't get any money, and we get 60 days to vacate. It costs her $10,000 or so (semi-WAG) and, most importantly, we have the first right of return if/when she decides to move out. And I've read the rent has to be "reasonable" to what we are paying now, but I don't know how that "reasonableness" is determined.

So when negotiating the buyout, I think I'll test the waters on her reaction to a "right of return at a reasonable rate" clause if she vacates the unit. If she balks, I may call her bluff on the OMI. I dunno. I'm guessing the lawyer will tell me to take $X and move on, but we'll see ...
posted by mrgrimm at 9:54 AM on October 20, 2016 [1 favorite]


I'm guessing the lawyer will tell me to take $X and move on, but we'll see ...

Money now handed over voluntarily DOES have its advantages compared to having to track something, prove something bad happened, take someone to court, and then collect money from them.
posted by salvia at 4:29 PM on October 20, 2016


Response by poster: I did talk to a lawyer last Friday and got mostly my money's worth, but ... the REAL rub is

Measure AA:
The measure would increase the amount of relocation assistance landlords are required to provide in move-in evictions from the $4,500 currently only provided to low-income tenants to $15,000 provided to all tenants. Certain more vulnerable tenants would receive an additional $5,000. AA would also prohibit owner move-in evictions of families with kids during the academic year.
That's up for a vote on 11/8. It would take effect ... near end of December (10 days after election results are certified ...). If she files the papers tomorrow, with 60 days notice required, that puts us at December 24.

There's a fine line she's walking and she may have passed over it.

I may as well ask what y'all (meaning any souls still reading) think about accepting a lease buyout (which requires a 30-day tenant-rescind clause *for any reason*) and then rescinding the offer if Measure AA passes... it does say "for any reason" exactly in my buyout disclosure forms...
posted by mrgrimm at 10:45 PM on October 25, 2016


I'm still following this. I know nothing about CA tenant laws. But from what I've read so far, you seem to be in a position of power as far as staying if you really want to stay or getting a nice amount of cash if you decide to go.

Re: Measure AA, I'd just be worried about if she would find some kind of way to be grandfathered in. I wouldn't put my eggs totally in that basket.

Just don't outfox yourself. That's what I'd be worried about most if I were in your shoes.
posted by Fukiyama at 9:37 AM on October 27, 2016 [1 favorite]


Best answer: I would not take any steps to rush this along. That is, don't bring it up with her, and if she brings it up, ask for paperwork to look over and let her know you'll get back to her after consulting your lawyer. Any time that passes is money in your pocket. Once she gives you either a buyout offer or owner move-in notice, you have some time to react to it.

I think I'd only rescind a buyout offer as a last resort of some kind, because it puts you in a very antagonistic position with your landlord. Maybe it would make sense if your intent was just to get you through the rest of the school year and then move.

My instinct is also that you are in a good position to stay. If you just gently make it clear that you understand your rights and will get legal advice as needed, it's possible she'll back off this thing entirely or realize she's off by an order of magnitude regarding a buyout.

(Regarding my own situation, I decided to call my landlord's bluff about the owner move-in, because I was pretty confident they didn't really intend to move in. But... I also had a back-up living situation available to me at short notice, and I was willing/able to keep checking up on the place to verify if they faked the owner move-in. Also willing to go through the madness of a wrongful eviction suit and able to afford lawyer's fees to do so. Almost a year later, I'm still in my apartment, and that has more than made up for rejecting the laughable sum of money they offered us. Your risk tolerance may be different.)
posted by ktkt at 12:30 PM on October 28, 2016 [3 favorites]


Response by poster: Thanks for the continued advice. I've talked to the rent board since last comment, and the woman there was very helpful but didn't give me too much information that I didn't already have..

ktkt, I like your style, mostly because that's about exactly what I'm doing: absolutely nothing. My landlord is nutty enough to never mention a buyout again, or just show up with news that she has filed the eviction papers, etc.

Until I see something official on paper (I'll even take email to be nice), I'm not doing anything except watching AA.

AA *only* gets us $20,000. The lawyer I talked to suggested we aim for $40K. Some people I've talked to think I should get nothing (landlords); others think $40K is too low (!!).

If you just gently make it clear that you understand your rights and will get legal advice as needed, it's possible she'll back off this thing entirely or realize she's off by an order of magnitude regarding a buyout.

That is the real REAL rub--i.e. she IS going to be off by an order of magnitude--and I like your stance. There's a fine line between becoming antagonistic and making it clear that you won't roll over. I hope I can walk it!

So far, 11 days later and nothing from my landlord...
posted by mrgrimm at 4:03 PM on October 28, 2016


Response by poster: If anyone has ideas about how I can research comparable buyouts, I'd be super grateful...
posted by mrgrimm at 4:09 PM on October 28, 2016


Response by poster: Literally less than 30 minutes after I posted, my landlord contacted me (last Friday) with:

"I realize it’s been almost 2 weeks since we met. I’d like to invite you to give me any ideas you may have."

How would you respond? There are a million right answers here...
posted by mrgrimm at 1:58 PM on November 1, 2016


Response by poster: ... today my wife got a phone call:

"Hey, what if you guys just volunteered to pay more rent?"

:|
posted by mrgrimm at 10:05 PM on November 1, 2016


My read: they're not interested in a real owner move-in. I would ask for a totally unrealistic buy out where you really would be pleased if they took it (say $200k) and furthermore say that if they choose to go for the owner move-in you will be watching like hawks to ensure that the owner/relative moves in & stays moved in for 36 months. They don't want you gone; they just want more money. Deny it to them.

Did you ever check the property rolls to see if the owner does in fact have 5 rental units and hence cannot evict you?
posted by crazy with stars at 10:10 PM on November 1, 2016 [1 favorite]


Response by poster: Quick update. She offered us $5,000 (moving expenses) and when I responded with "Gee, that seems low. Let me talk to the Rent Board and research other buyouts in our neighborhood." she didn't wait for me to reject the offer and served me with (what she thinks is) a Notice to Quit the next day.

However, the notice to quit was invalid (for several reasons; most importantly, she never filed with the Rent Board nor provided the (now mandatory) relocation compensation.

Now she's threatening to fumigate the place immediately because she "doesn't want to move into a place that's been recently sprayed." Ugh.

I also found out that she has been overcharging us for rent for the past year (she incorrectly recorded our initial rent with the Rent Board as $100 than actual.) Good news is that the utilities we pay for in the other units can be petitioned along with that overcharged rent. Bad news seems to be (according to my lawyer) that she can just say "nah, I changed my mind" and not pay us the relocation compensation.

I *do* think she is planning to move in, and we now want to leave, so it's possible we may get nothing...

I'm not exactly sure what's rescindable or not. Rent Board says the invalid notice to quit is still non-rescindable, but my lawyers says that it is ... maybe I need a new lawyer.

Anyway, I'll keep you posted! It continues ...
posted by mrgrimm at 12:46 PM on February 23, 2017 [1 favorite]


How did things turn out?
posted by Fukiyama at 10:50 AM on September 3, 2017 [1 favorite]


Response by poster: It's still not finished.

Good news: we found a great house to live in, and we bought it! (My first owned home (though something I never really wanted to do...) Mortgage turned out to be much cheaper than renting, and we had money saved for the down payment.

Bad news: Our landlord never acknowledged the overpayment for utilities nor the overcharged rent, and of course she never acknowledged the required eviction compensation.

When we moved out, she charged us $3,900 in damages, mostly for cleaning and nicks in wood floors. Completely ridiculous. She charged us $1,300 for a small dent in the garage door (that she still hasn't fixed 5 month later).

Our deposit was $2,300, which she kept. I'm pondering whether or not it's worth it to pursue damages, but I've been busy moving into the new house and taking care of the kids, etc.

It was SO GREAT to finally move out from under her thumb that I am reluctant to dive back in and work hard for damages. I could certainly use the money, but I don't want to spend 100 hours for $1,000. She is a painful, painful person to deal with.

I can't seem to find any decent legal advice. Most lawyers are familiar with Oakland/SF law, not Berkeley, which is different. I really want to know whether or not we have any claim to the eviction compensation, but every lawyer I've asked says no (because we moved out voluntarily before the eviction date).

She never rescinded the eviction and I believe she moved into the house in August. Again, I'm not sure I want to investigate anymore ...

I will update when there is any resolution or if I finally decide to just drop it. My wife wants me to drop it, but the unfairness still grates.
posted by mrgrimm at 12:28 PM on September 11, 2017 [1 favorite]


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